ISM Services PMI Beats Estimates in August, but Employment Index Stays Below 50
NewsData.io · United States · Sep 3, 2026
The ISM Non-Manufacturing PMI rose to 55.4 in August, topping the 54.2 estimate and last month's 54.1, signaling solid expansion in the services sector. Business activity and new orders both accelerated meaningfully, but the employment index remained contractionary at 47.8 — meaning stronger service-sector demand is not yet translating into net hiring gains. Prices paid also climbed to 72.6, pointing to persistent cost pressures that could keep the Fed cautious on rate cuts. For staffing firms serving services-sector clients, the demand signal is encouraging, but the stubbornly sub-50 employment reading suggests businesses are absorbing workload without meaningfully expanding headcount.
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